Form 4: Golden Matrix Group Insider Zoran Milosevic Acquires Restricted Stock Units

Zoran Milosevic, CEO of Meridian Subsidiaries and a member of a 10% reporting group, acquired 250,000 restricted stock units (RSUs) in Golden Matrix Group, Inc.

Summary

• Zoran Milosevic, CEO of Meridian Subsidiaries, filed a Form 4 disclosing changes in beneficial ownership of Golden Matrix Group, Inc. (GMGI) securities.
• On May 9, 2024, Milosevic acquired 250,000 restricted stock units (RSUs) under the Issuer's 2022 Equity Incentive Plan.
• The RSUs vest if Golden Matrix Group meets certain revenue and Adjusted EBITDA targets by the end of fiscal year 2024 and publicly discloses these results in its Annual Report on Form 10-K, contingent upon Milosevic's continued service.
• Milosevic already owns 8,214,186 shares of common stock.
• Milosevic is part of a 'group' under Section 13(d) of the Securities Exchange Act of 1934 due to a Nominating and Voting Agreement dated April 9, 2024, but disclaims beneficial ownership of securities owned by other signatories to the agreement.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The acquisition of RSUs suggests confidence in the company's future, but the vesting conditions introduce uncertainty. The 'group' status adds a layer of complexity.

Positives

• The acquisition of RSUs aligns Milosevic's interests with the company's performance, incentivizing him to help achieve revenue and Adjusted EBITDA targets.
• The vesting conditions tied to financial performance suggest a focus on growth and profitability.

Risks

• The vesting of RSUs is contingent on the company meeting specific financial targets, which may not be achieved.
• The 'group' status under Section 13(d) could trigger regulatory scrutiny or require additional disclosures.

Future Outlook

The vesting of the RSUs is dependent on the company achieving certain revenue and Adjusted EBITDA targets by the end of fiscal year 2024, indicating a focus on financial performance in the near term.

Management Comments

• Zoran Milosevic disclaims beneficial ownership of any securities owned by other signatories to the Voting Agreement.

Industry Context

Insider transactions are common in publicly traded companies and are closely monitored by regulators and investors. The acquisition of RSUs can be seen as a positive sign, indicating management's confidence in the company's future performance. However, the 'group' status under Section 13(d) could raise concerns about potential conflicts of interest or undue influence.

Comparison to Industry Standards

• RSU grants are a typical form of executive compensation in the gaming and entertainment industry, often tied to performance metrics like revenue growth and profitability.
• Comparable companies like DraftKings, Penn Entertainment, and Flutter Entertainment also utilize equity-based compensation to align management incentives with shareholder value.
• The vesting conditions tied to revenue and Adjusted EBITDA are consistent with industry best practices for incentivizing financial performance.

Stakeholder Impact

• Shareholders may view the RSU acquisition positively, as it aligns management's interests with the company's performance.
• Employees may be motivated by the company's focus on achieving revenue and Adjusted EBITDA targets.
• The vesting of RSUs could dilute existing shareholders' equity if the company meets its targets.

Next Steps

• The company needs to meet its revenue and Adjusted EBITDA targets for fiscal year 2024 for the RSUs to vest.
• The company will need to publicly disclose its operating results in its Annual Report on Form 10-K.
• Investors will monitor the company's performance against these targets and any further disclosures related to the 'group' status.

Key Dates